Selling the company: Considering that our plant produces annual cashflows of $240,000 increasing at a 0,5% annual, expected to last for many years, for how much should we value the company today if investors are willing to obtain a profitability of 3%?
Selling the company: Considering that our plant produces annual cashflows of $240,000 increasing at a 0,5% annual, expected to last for many years, for how much should we value the company today if investors are willing to obtain a profitability of 3%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Finally, there is a last consideration:
a) Selling the company: Considering that our plant produces annual cashflows of $240,000 increasing at a 0,5% annual, expected to last for many years, for how much should we value the company today if investors are willing to obtain a profitability of 3%?
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